Red-blooded victory for CPI

Red Paper acquisition boosts CPI's half yearly results, establishing it as the second largest paper merchant in Australia.

The acquisition, which took place in November last year, was noted as the company's most significant achievement for the half year, ending December 2007. When the acquisition was first announced in November 07, Gerry Van Wyngen, chairman of CPI said that: "Combining the two groups in Australia will create a strong, customer-focussed and profitable business group with turnover in excess of over half a billion."

Since then, the Red Paper acquisition has enabled CPI to broaden its product range so that it has a market position in most sections of the industry and allowed for flexibility to deal with the emerging trends in paper distribution. Managing director, Bernard Cassell, said that CPI's priority would now be on developing this further. "The focus will be on maintaining the presence and market position in all these areas whilst continuing to evaluate processes in the back office and distribution areas to deliver higher value to shareholders," he said.

CPI performed well in the half year, achieving a net profit of $3.722 million, but Cassell warned that factors such as pricing pressure could prove tough later in the year. "The group is concerned that rapidly rising interest rates and a potentially weaker economy could adversely affect demand and trading," he said. Cassell added that CPI would be pursuing positive asset management and cost control.